First Plus - Lumping Interest Up Front on Settlement

[Misteeq]

Hi,

 

I'm new on here after being recommended by a friend.

 

Just wondering if anyone has had dealings with First Plus?

 

Its a long story, but basically, I took out a loan with them in 2006, and then after 24 months settled it early and my settlement figure was nearly £2,000.00 MORE than the initial loan that I took out. I had repaid them over £3,000.00 during the 24 months that I had the loan, which they seemed to have failed to take into account when calculating my settlement figure.

 

I have been fighting with them for over eight months and every letter they send back to me quotes different figures to what I actually signed up for.

 

Has anyone else had dealings with First Plus? They really are an absolute nightmare and I would advise anyone to stay well clear of them.

 

What are the chances of getting my money back?

 

Thanks

[Mark Wilson]

A lot of info will be found by googling firstpluscomplaints

 

If they used the Rule of 78, which they should not have then it is likely you were penalised too heavily.

 

Ask them for full disclosure on the s/f charge.

 

There are a lot of issues out there with FP and they are trading with difficulty at the moment so every penny gained from a customer is a penny less that they have lost.

[Misteeq]

Thanks Mark for your reply.

 

I will try what you have suggested as I am determined to try to get back some of my money. The initial loan was for £12,000.00 and I repaid over £3,000.00 over 24 months. When I asked for a copy of my settlement figure, they had lumped almost £39,000.00 up front for the interest! God knows where they had plucked this figure from as it is certainly not mentioned anywhere in my credit agreement.

 

They also fail to take into account my repayments of over £3,000.00 in their settlment figure.

 

I would never ever go near First Plus again and would advise anyone who is thinking of taking out a loan with them to think twice.

 

Thanks

[Misteeq]

Hi,

 

How can I find out if my First Plus Loan was settled using the Rule 78?

 

I've checked all my paperwork, and the Agreement that was dated January 2006 (the date that I initially took out the loan) states that if I settle early then they will settle under the Consumer Credit Act 1974.

 

However, when I received a letter last week asking how my settlement figure was calculated in February 2008, it stated they had calculated it based on the Consumer Credit Act (Early Settlement Figure) 2004.

 

Which one is correct? Does anyone know?

 

This is such a frustrating situation as from what I have read on this forum and other forums, First Plus really do like to rip people off. As stated above in my previous post, surely it is not correct that my settlement figure, after paying over £3,000.00 back to them over 24 months, was almost £2,000.00 MORE than the initial loan.

 

Where do I go from here? First Plus seem to have backed me into a corner with this one.

 

Thanks

[Mark Wilson]

First Plus are no longer offering loans, they are only surviving due to support from Barclays and are being investigated on many fronts ranging from the misselling of PPI to the fairness (or not ) of their interest rate clause. They have a provision of £8m in their accounts that they expect to have to pay to successful PPI complainees.

 

Re settlements, you are lucky in that your loan was regulated so they cannot do anything other than follow specific guidelines for settlement. Standard calculations would show ALL the interest due to the end of the loan then rebate what is allowable under the caluclation.

 

As you were relatively early in your loan in terms of settlement then it is standard in how interest is apportioned that you would not have cleared off that much capital in 2 yrs. That said, the settlement figure quoted does seem excessive. Have you spoken directly to them? Louisa Jane Hart is one of their remaining people and whilst she obviously tows the party line, it does not detract from her being able to help 02920905507 is her number. Ask for full statement and breakdown.

[MWB]

Hi All,

I have no direct involvement with FP but check out my thread called Swift advances PLC and in terms of nightmare early settlement calculations Swift make FP look like pussycats!

Swift do use the Rule of 78 ( I took my loan out in 2003) but this is being removed in May 2010 as part of an overhaul of the regulations.